The Toronto stock market was higher Tuesday amid strong U.S. economic data but sentiment was still weighed down by concern about central banks and interest rates.
The S&P/TSX Composite Index bolted ahead 168.56 points, or 1.4%, to close at 12,005.42
The Canadian dollar faded 0.07 cents at 95.17 cents U.S.
Two of Canada's largest medical lab operators will be combined under a $1.22-billion friendly takeover deal backed by one of Ontario's largest public sector pension funds. LifeLabs Medical Laboratory Services will pay $10.75 per share cash and assume $255 million of debt to acquire all of CML HealthCare Inc. of Mississauga, Ont.
CML shares jumped $3.40, or 47.2%, to $10.60.
Several major financial services companies, including Royal Bank of Canada, are planning to set up a new Canadian stock market. The venture, to be called Aequitas Innovations Inc., would be an alternative to the Toronto Stock Exchange and other markets owned by TMX Group Inc. TMX shares dropped $1.00, or 2.9%, to $42.80.
The TSX base metals component rose as the July copper contract on the New York Mercantile Exchange was ahead five cents at $3.07 U.S. a pound. First Quantum Minerals advanced 45 cents, or 3.2%, to $14.74 while Teck Resources improved by 72 cents, or 3.4%, to $21.94.
The energy sector rose as Canadian Natural Resources was ahead 41 cents to $29.76.
The gold sector displayed the weakest growth of all the advancing groups, as growing conviction the Fed will start to wind up its bond purchases pushed August bullion.
Barrick Gold was down 37 cents to $16.91.
The information technology sector was ahead, with BlackBerry ahead 57 cents, or 3.9%, to $15.32 as the company launched a business service for corporate and government workers with Google Android and Apple smartphones.
Called the Secure Work Space, it allows these users to separate their data and work apps, such as e-mail and calendars, from their personal apps, bringing a greater level of security.
The industrials group rose while Canadian National Railways advanced $2.16 to $100.74.
ON BAYSTREET
The TSX Venture Exchange gained 2.34 points to 882.36
All 14 Toronto subgroups ended the day in the green, led by health-care, thundering upward 13.4%, while information technology clicked 2.7% higher, and metals and mining stocks strengthened 2.6%.
ON WALLSTREET
Wall Street bounced back Tuesday as signs of strength in the U.S. economy overshadowed concerns about China's credit problems.
The Dow Jones Industrials added 100.75 points to greet the closing bell at 14,760.30
The S&P 500 index gained 14.95 points to 1,588.04. The tech-rich NASDAQ Composite jumped 27.13 points to 3,347.89
After suffering heavy losses in the past few days, investors dipped back into stocks following a string of upbeat economic reports.
Shares of Walgreen sank more than 6% after the drugstore chain missed earnings and revenue forecasts.
Barnes & Noble shares plunged after the bookseller said it will stop making the Nook in-house and will partner with a third party to manufacture the eReading device. Sales in the Nook segment fell 34% in the quarter to $108 million U.S.
Carnival said earnings fell 55% to nine cents U.S. per share in the second quarter. The beleaguered cruise ship operator warned in May that earnings would suffer this year due to price cuts following the Carnival Triumph mishap. But the drop in earnings was not as bad as some had feared, sending Carnival's stock higher.
Gun maker Smith & Wesson will release fourth-quarter results after the market closes.
Economically, the S&P/Case-Shiller home price index was up 12.1% in April compared to a year ago for the 20 top real estate markets across the nation. It was the biggest annual jump in prices in seven years and the 2.5% jump from March was the biggest one-month rise in the 12-year history of the index.
In more good news for housing, homebuilder Lennar Corp. reported sales and earnings that topped forecasts. New orders rose 27% in the quarter. Lennar shares held gains, but were off earlier highs.
A report on durable goods came in better than expected. The Census Bureau said new orders for big-ticket items rose 3.6% in May. Economists had forecast a 3% rise, according to Briefing.com.
New home sales also topped estimates, rising 2% in May to a seasonally adjusted rate of 476,000 units, according to the U.S. Commerce Department.
Meanwhile, a measure of consumer confidence rose to the highest level since January 2008. The Conference Board's index of consumer confidence for June hit 81.4, up from 74.3 in May. Consumers have been encouraged by improvement in the job market, the business research group said.
Prices for the 10-year U.S. Treasury against tumbled, boosting yields to 2.59% from Monday’s 2.55%. Treasury prices and yields move in opposite directions.
Oil prices gained back six cents to $95.23 U.S. a barrel.
Gold prices dropped two dollars to $1,274.80 U.S. an ounce
